US long-dated Treasury yields fell to seven-month lows on Tuesday, as nervous investors favored the safety of bonds ahead of Thursday's general election in Britain, the European Central Bank's policy meeting, and former FBI Director James Comey's testimony before a Senate panel. Ten-year Treasury yields, which move inversely to prices, currently sit at 2.141 percent.
A close at or below that yield could test the psychological 2.0 percent level, said Lou Brien, market strategist at DRW Trading in Chicago. "We have a situation here where technicals are informing the direction of Treasuries, with the various risk events adding to the momentum," said Brien.
In the British election, a tightening race between the ruling Conservative Party over the opposition Labor Party, based on recent polls, raised uncertainty about Britain's path in its exit from the European Union. Traders have also speculated on whether ECB policymakers might signal a possible end to the central bank's bond purchase program at its upcoming meeting amid an improving European economy.
Safe-haven bids pushed US 10-year Treasury yields to 2.129 percent, the lowest since November 10, two days after Trump's surprise election victory. Yields were last at 2.143 percent. US 30-year bonds rose 22/32 in price, yielding 2.807 percent, compared with Monday's 2.84 percent. US two-year yields, meanwhile, were at 1.294 percent, from 1.306 percent late on Monday.
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